GST ITC Impact on financial year closing

The input tax credit availed in GST is under provisional basis…the reason is matching is not done…….so what are the financial implications? Do i need to state it as contingent item or make  a provision for the same in the financials? – point to ponder before close of financial statement for the FY 2017 – 18?

Advertisements

GST Tip – 386

No person shall be eligible to attend before any authority as a goods and services tax practitioner in connection with any proceedings under the Act on behalf of any registered or unregistered person unless he has been enrolled as GST Practitioner.

GST Tip 182

Input tax credit for cess being levied under Goods and Services Tax (Compensation to States) Act, 2017,  is eligible only for the making the output tax liability of the Cess under the same act and not for payment of any other taxes output liability under GST.

GST Tip – 181

Under the Goods and Services Tax (Compensation to States) Act, 2017, Cess will be levied on all interstate and intra-state transactions on the supply of goods and service notified by the GST council from time to time. Cess is not applicable to be paid by persons who have opted for registration under composition scheme.

GST Tip – 175

Input tax credit with respect to a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances have an option to claim only 50% of the GST taxes paid as Input Tax Credit. Alternatively, they can avail input tax credit to the extent excluding the services used for exempted and zero rated supplies.

GST Tip – 168

The definition of “manufacturer” having reference to the existing reference of Central Excise Act 1944. The new definition of manufacture is “manufacture” means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term “manufacturer” shall be construed accordingly.

GST Tip – 166

Union Territory GST is applicable for the supply of goods and services within the Union territories. It applies in the following places (a) the Andaman and Nicobar Islands, (b) Lakshadweep, (c) Dadra and Nagar Haveli, (d) Daman and Diu, (e) Chandigarh & (f) other territory. With the addition of the clause “f” in the definition, future is safeguarded.